What does this mean?
The announcement of these consultations reaffirms the UAE's commitment to implement Pillar 2 of BEPS (essentially adopting a minimum corporate tax rate of 15%), what therefore implies further changes to the UAE's tax and other legislative frameworks in order to comply with the Global Anti-Base Erosion (GloBE) rules.
Who will be primarily affected by the upcoming changes?
All enterprises operating in the UAE and forming a part of a multinational group with total annual revenue exceeding 750 million euros (almost 3 billion dirhams), whose opinions, along with those of the investors and service providers, the UAE Ministry of Finance would like to hear first. Materials submitted to the UAE Ministry of Finance will assist in the issues of drafting new legislatiions, such as internal implementating regulations, interaction with the UAE's corporate tax system, ways to minimize compliance costs, and the exploration of policy options for GloBE rule potential realization.
The deadline for submitting materials for the consultations is Apr...